Lackluster debut for crypto ETFs in Hong Kong

Klaytn Foundation Denies Embezzlement Allegations Involving KLAYThe Klaytn Foundation, the group behind virtual asset KLAY, has denied allegations against the former chairman of Kakao, the South Korean messaging app developer, as well as executives from its subsidiaries, according to local news outlet Digital Asset. These allegations accuse them of embezzlement involving the cryptocurrency.A formal complaint detailing these allegations was submitted on Wednesday by Economic Democracy 21, a civic group, to the joint crypto-crime investigation division of the Seoul Southern District Prosecutors’ Office.Photo by alleksana on PexelsKlaytn’s responseIn response, the Klaytn Foundation has characterized the allegations as arbitrary and unfounded. The foundation is taking the matter seriously and is planning to conduct a comprehensive fact-check to actively address the claims.Civic group’s claimsEconomic Democracy 21 contends that select insiders at Kakao and its subsidiaries have illicitly accumulated hundreds of billions of Korean won. According to the group, this was done by converting KLAY tokens into cash under the pretense of investment and compensation.Ongoing commitmentIn the midst of this legal dispute, the Klaytn Foundation reaffirmed Klaytn’s steadfast dedication to advancing its scheduled initiatives in collaboration with its ecosystem partners.

Ant Group Targets Web3 Developers With New Brand LaunchChina’s Ant Group, the powerhouse firm behind the world’s largest mobile payment platform, Alipay, has made a strategic move by introducing its new blockchain-focused sub-brand, ZAN.The initiative signals Ant Group’s intention to carve out a specific niche in the blockchain sector while simultaneously preparing for a potential initial public offering (IPO) that is free from its affiliations with Web3.Photo by Denys Nevozhai on UnsplashOffering a suite of solutionsZAN’s unveiling, which was announced in an official press release via Business Wire on Friday, heralds a comprehensive suite of technical solutions and services catering to both institutional players and individual developers in the Web3 ecosystem. At its core, ZAN offers a solution that enables Web3 companies to seamlessly issue and manage real-world assets (RWAs) while adhering to local regulatory frameworks.But ZAN’s ambitions don’t stop there. The brand aspires to revolutionize the Web3 landscape with a suite of technical offerings, including cutting-edge tools for electronic Know Your Customer (KYC) procedures, anti-money laundering (AML) measures, and Know Your Transaction (KYT) checks, all purpose-built with a view towards achieving the highest levels of compliance.Focus on dAppsMoreover, ZAN will also focus its attention on decentralized applications (dApps) through its provision of smart contract reviews and node services. These services, including remote procedure calls (RPCs), are poised to empower developers, offering them the essential tools they need to craft innovative dApps that can thrive within the Web3 ecosystem.ZAN’s journey has already seen notable partnerships, with HashKey DID, a decentralized identity data aggregator in the Web3 space, announcing its adoption of ZAN’s electronic KYC solution during the Hong Kong Web3 Festival in April.This move by Ant Group aligns with its reported intention to segregate its blockchain subsidiary from its core entity. In July it emerged that the company was restructuring with implications for its blockchain activities having been envisaged at the time. Given the size of the enterprise, the adoption of blockchain by Ant Group thus far has played a pivotal role in furthering blockchain use and implementation within Mainland China.IPO and further expansionThis separation is expected to be a pivotal step for the company in securing a financial holding license in China, further underscoring Ant Group’s interest in pursuing compliance and regulatory alignment.Ant Group had ambitious plans for a $30 billion initial public offering (IPO) in Hong Kong and Shanghai in 2020, with a staggering $226 billion valuation at the time. It’s evident that the financial giant remains resolute in its pursuit of expansion and diversification, although it has faced regulatory obstacles in its endeavors to do so.While the IPO was thwarted by the Chinese government, it is promising for the development of blockchain within China to see that the firm is once again making strategic moves in the blockchain sector, spearheaded in this instance through ZAN.

Report: Asia Set to Dominate Web3 Gaming MarketA new report has revealed that Asia is poised to dominate the growing Web3 gaming market, accounting for as much as 80% of all players. The study, conducted by Japanese firm Pacific Meta and DappRadar, found that the region already accounts for 55% of the global gaming population, with 1.7 billion players.©Pexels/Lucie LizThe report identified that the role-playing genre is the most popular in Asia, with games such as Final Fantasy, Phantasy Star Online and Genshin Impact ranking highly.Legal restrictionsThe research noted that legal restrictions on gaming are prevalent across the region, with China only allowing gamers under 18 to play for one hour a day and blockchain games all but banned in South Korea. Despite these restrictions, the report argued that Nexon’s Web3 play with MapleStory Universe and Square Enix’s upcoming Web3 game Symbiogenesis are two examples of crypto games gaining traction in the East. Both games will use the Polygon blockchain, currently the most preferred network for Web3 gaming from a game studio perspective.The report also concluded that Web3 gaming is a “natural” fit for the Asian market because of the types of games to which the market is accustomed. It argues that as Web3 games become more focused on gameplay over financials, Western and Eastern audiences will come to expect similar experiences.A developing understanding of Web3 gamesTo better understand the market, Pacific Meta surveyed over 1,000 adults in Japan and found that 40% knew about blockchain games. Among those who knew about such games, nearly 57% said Web3 games “seemed interesting”, while roughly 10% said they did not seem interesting. Notably, about 33% said “neither”, suggesting they were perhaps unsure about Web3 games and hadn’t yet formed an opinion on them.When asked about the types of blockchain games they would be interested in, 773 out of the 1,030 surveyed said that they would like a game to be free-to-play, and that initial cost was an important feature to them. 538 said that they would like the game to be playable on a mobile phone. Player earnings, game quality, consoles, and famous IP scored lower on the list.Long road to mainstream adoptionThe report highlights that the nascent industry still has a ways to go before it sees mainstream adoption. Nevertheless, big brands such as Razer and FIFA are doubling down on Web3 gaming projects. With the Asian market poised to take a dominant role in Web3 gaming, developers will need to tailor their offerings to suit the preferences of the region’s gamers.The Web3 gaming market in Asia is enormous and is expected to dominate the global market, with Japan a key market for growth. Developers will need to focus on the role-playing genre and create free-to-play mobile games to appeal to gamers in the region. As the Web3 gaming market continues to grow, and blockchain technology advances, it is likely that we will see more games and platforms targeting Asian gamers in the coming years.